US jobless claims hit highest level since early 2021
The number of Americans filing for unemployment benefits rose more than expected last week, according to data released on Thursday by the Labor Department.
US initial jobless claims increased by 22,000 from the previous week’s unrevised level to 264,000. This was above expectations for a jump to 245,000 and marked the highest level since 30 October 2021, when it was 264,000.
Meanwhile, the four-week moving average came in at 245,250, up 6,000 from the previous week’s unrevised average. This is the highest level for this average since 20 November 2021, when it was 249,250.
The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, giving a more accurate picture of the health of the labour market.
Oxford Economics said: "While the April jobs data surprised to the strong side, the latest jobless claims data are consistent with loosening labor market conditions.
"It's just one week of data, but the increase in claims last week pushed the four-week moving average for claims to the highest level since November 2021. Evidence of cooling demand for labour will allow the FOMC to refrain from raising rates at the June meeting."